Saudi Press

Saudi Arabia and the world
Sunday, Sep 14, 2025

People could be asked to watch educational video before investing

People could be asked to watch educational video before investing

Financial Conduct Authority says current ‘risk warnings’ are often ignored by consumers
People looking to put money into higher-risk investments could be required to watch educational videos or pass an online test first, the City regulator has suggested.

The Financial Conduct Authority said the current “risk warnings” on investments were often ignored by consumers, and it also floated the idea that people might have to disclose their salary and other personal information as part of the sign-up process for certain products.

The regulator is concerned that too many investors – particularly a new breed of mainly younger DIY investors – are taking big financial risks by putting money into products that may be inappropriate for them, such as cryptocurrencies and foreign exchange, and could end up losing some or all of their cash.

It has expressed concern about the growing influence that sites such as YouTube, Instagram and TikTok are wielding.

Some commentators say the FCA has been stung by criticism over its mishandling of previous high-risk investment schemes that have gone wrong. It has been slated over its failure to properly regulate the “mini-bond” firm London Capital & Finance (LC&F) before it collapsed in 2019. Taxpayers now face a £120m bill for compensating thousands of people who lost money in that scandal.

Publishing proposals to strengthen the rules relating to “financial promotions”, the FCA said: “Too often consumers are investing in high-risk investments they don’t understand and [which] can lead to significant and unexpected losses.”

Other investments defined as potentially high-risk include investment-based crowdfunding and peer-to-peer lending.

Many financial adverts and websites carry warnings along the lines of “your capital is at risk”, but the FCA said these were often perceived as “white noise” by many investors.

Some investments already carry restrictions, but the regulator said it wanted to do more to prevent people from simply “clicking through” and signing up for risky products they did not understand and which did not match their risk appetite.

It said measures it might consider included requiring would-be investors to watch educational videos on topics such as investment risk and “the benefits of diversification”, and flushing out those people who were not sufficiently knowledgable about financial products by requiring that they take, and pass, an online test.

Other ideas floated include introducing “frictions” into the process such as requiring a text message confirmation before an investment is made, and making people provide additional information such as details of their salary, net assets and how much they have previously invested in other high‑risk schemes.

Becky O’Connor, head of pensions and savings at the website Interactive Investor, said: “In a world of TikTok investment influencers and bitcoin advertisements on the London Underground, and at a time when some people are feeling flush after lockdown and keen on finding quick ways to make a profit, there are real risks that people will succumb to high-risk investments that aren’t right for their circumstances.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
×